American Airlines has revised its Contract of Carriage, introducing stricter deadlines for reporting damaged mobility devices and establishing a fixed refund structure for passengers involuntarily downgraded from premium cabins. The changes affect how compensation claims are handled and could significantly impact travelers who rely on assistive devices or purchase higher-class tickets.
The new rules require passengers to report wheelchair damage within a short timeframe on domestic flights, while refund payments for cabin downgrades are now limited to 40 percent of the ticketed fare for the affected flight segment. The updates reflect a broader trend across the airline industry toward tightening operational policies and clarifying passenger rights.
New 24-Hour Deadline for Wheelchair Damage Claims
One of the most notable changes involves how quickly passengers must report problems involving mobility or medical devices. Under the updated contract, travelers on domestic flights must report delayed or damaged mobility devices within 24 hours.
For international travel, the timeline differs slightly. Delayed delivery of mobility or medical devices must be reported within 21 days, while damage claims must be filed within seven days. These deadlines establish a clear reporting window that did not previously exist in the airline’s mobility device liability policy.
The stricter deadline may reduce the number of successful claims if passengers fail to report issues quickly enough. In past years, American Airlines has recorded more incidents of wheelchair damage per passenger than many other U.S. carriers, according to industry reporting.
Practical Challenges for Travelers Filing Claims
Although the new policy clarifies reporting deadlines, passengers may still face challenges when filing claims. Travelers sometimes report damage verbally at the airport but fail to obtain an official claim number, which can complicate later compensation requests.
In other cases, airline staff may mistakenly classify the issue as an assistance request rather than a mishandled assistive device report. Such categorization errors could affect whether a passenger qualifies for compensation.
Passengers must also submit claims through the airline’s baggage service office. Reports filed through customer relations channels may be rejected because they fall outside the designated reporting process.
Another complication involves damage that is not immediately visible. Wheelchairs may develop structural or mechanical problems that only appear after the passenger begins using the device later in the day. Common issues include bent frames, misaligned components, electronic failures, or joystick malfunctions. Under the new rules, passengers who discover these problems after the 24-hour reporting window may find their claims denied.
Long lines at baggage service counters or closed offices late at night can also make timely reporting difficult, especially for travelers experiencing pain, limited mobility, or caregiver constraints.
Fixed Refund Formula for Cabin Downgrades
American Airlines also clarified how compensation is calculated when passengers are involuntarily moved from premium cabins to a lower class of service.
Under the revised contract, passengers will receive a refund equal to 40 percent of the ticketed fare for the downgraded flight segment.
For example, if a traveler purchases a domestic business-class ticket for $1,050 but is moved to an economy seat priced at $200, the airline would refund $420—representing 40 percent of the ticketed fare.
The same rule applies to international travel. A passenger who paid $5,000 for a business-class ticket but is downgraded to economy might receive a $2,000 refund under the new formula, even if the price difference between cabins is significantly larger.
Mixed Reaction to the New Policy
Historically, passengers have reported inconsistent compensation for involuntary downgrades. In some cases, refunds were calculated based on the highest economy fare on the flight rather than the difference between the premium and economy ticket prices.
The new 40 percent rule may provide clearer expectations for travelers, but critics argue that it does not always reflect the true price gap between cabin classes. On routes where premium tickets cost several times more than economy fares, passengers may recover only part of the amount they originally paid.
Passenger advocates have suggested alternative approaches, such as calculating refunds based on the actual fare difference at the time of purchase or offering additional compensation when airlines fail to deliver the purchased cabin product.
Limited Options for Passenger Disputes
Travelers who believe their claims were handled unfairly may file complaints with the U.S. Department of Transportation. However, federal regulators typically provide limited intervention in individual disputes between airlines and passengers.
As a result, most disagreements regarding damaged mobility devices or downgrade compensation must be resolved through the airline’s internal baggage service and customer relations processes.
For passengers who rely on mobility equipment or frequently purchase premium cabin tickets, understanding the updated Contract of Carriage has become increasingly important when traveling with American Airlines.

